The government institution responsible for monetary policy, interest rates, and currency stability in a country.
Key central banks for forex traders include the Federal Reserve (USD), European Central Bank (EUR), Bank of England (GBP), Bank of Japan (JPY), and Reserve Bank of Australia (AUD). Their rate decisions and forward guidance are the single largest driver of sustained currency trends.
Central bank intervention - directly buying or selling a currency - can override technical levels and catch trend traders off-side. Meetings are scheduled events; traders monitor minutes, statements, and press conferences for clues on future policy.